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This post has been edited by debbieyss: Aug 3 2009, 01:19 PM

Good news for Ramunia

KUALA LUMPUR, Aug 3 (Reuters) -

Plantations-to-property conglomerate Sime Darby Bhd (SIME.KL) will pay 560 million ringgit ($159.1 million) to acquire energy services firm Ramunia (RAMU.KL),
revising an earlier offer to pay 232 million ringgit for the stake excluding liabilities, the Malaysian Reserve reported on Monday, citing sources.

Under the revised offer, Sime will pay for the acquisition in cash instead of the part cash, part share in unit Sime Darby Engineering (SDE) offer it made in May.

"The offer is better for Ramunia shareholders as they will get a lump sum amount in cash for the purchase as opposed to the earlier offer that included shares in SDE as part of the payment," one source said.
An official at Sime Darby said she was unable to immediately comment on the report.

Sime's acquisition of Ramunia will enable it to tap into the firm's 176-acre fabrication yard, doubling its existing yardspace to about 280 acres.
Analysts had said the initial deal significantly undervalued the loss-making, debt-laden energy services firm.


(Reporting by Julie Goh; Editing by David Chance)

To be honest, i'd yet to see or heard any people doing such strategy, but in books or theories, its advisable to do so.

If im not mistaken, if the underlying index is bullish which could imply that the acquisition would be more expensive for purchase, futures is used to cover the extra cost. I'm still questioning and wondering, whether this strategy is consider a hedging.

True, from my observation this far, many actually prefer to keep their long position rather than completing a trade. Just like last month contract, there are clients hold their long position since 103- level or more and closed their transaction with the settlement price at the end of the month of July, which is of course more than 100 ticks of profit.

I see. No worries, you got ample of time to decide to play futures.

Today first day new smaller tick system, it gives some impression like buying vegetable in pasar every single cent count, especially those >10.00.

I have a friend hold his contract at 1068pt (the MP of the first working day of July) and sold off at settlement price at the end of July.

Actually it makes no sense at all. Why over RM10-RM20 when you have >10K to buy stocks

That's a lucrative amount right there. So, what's your plan for August?

problem is you will be required to have substantial amount of liquid assets to hedge i.e. cash on hand.

forseeable problems margin call (if the market suddenly not in fabour of the futures trader n increase in intial margin.)

Thats what Plantations are doing hedging their position, but the risk of default (in the event of significabnt flactuation, default in delivery may be greater).

For KLCI traders, external or internal events may encourage the KLCI to swing wildly... may cause substantial losses especially for hedgers. (if a person were to cut loss, it would be called speculating rather than hedging wouldn't it?)

This post has been edited by aurora97: Aug 3 2009, 02:31 PM

Thanks for your advice.

Well, I just thinking if a new trader like me running in and out all the times ( future ) , the chances of getting caught are very high.

Why not I just buy on dip and keep the future contract for a longer duration since we are yet to call the market , bull run.

Take profit only when it is necessary, without having to predict whether the market would be up or down the next day.


I try to do it , my own way, no theory book to support.

Ya, lucrative amount, he went for 2 contracts in fact


I read the newspaper and it says CI is possible to rise up to 1250 in the months to come (possible this month)?

I'm just trying to see how it goes. Haven't decided yet.

This post has been edited by debbieyss: Aug 3 2009, 02:38 PM

uh-oh, rambutan is getting more and more expensive... need to wait a long timemore before can buy again...

so whether 2cents tick or 10cents tick, it has little effects on price movement....

My thoughts...

Don't normally see small time retail speculators hold overnight, most speculators would opt for intraday...

must be really careful when institutional clients rollover their positions at the end of the month, price may flactuate rapidly.

One lot is not too high a risk to try.

It could be rewarding too.

All about timing in the futures and forex game.

well again my 2cts, just put a stop loss trigger...

in case one of those unforseen circumstances do happen... keep ur eyes and ears peeeled at all times for trouble.

trade with caution.

Gd luck

You are right, any swing, provided that FKLi is moving in tandem with the market, it will cause substantial losses. Regarding the speculating and hedging, im not sure which is fit, but for futures traders or players, most of them are speculating and yes, including cutting their losses.


True. Too early to call it a bull run, in my opinion. Most of the futures players in my company play according to the system given to them. For example, signal given by Grand Pine.

Yes, take profit but just be extra cautious if the market moves against your original position.

Yeah, eventually you would prefer your own techniques and strategies since you have your own financial planning. Books are for us to pass the examinations

Quoted for the truth.

Aptly said

I know someone lost over 200K in one week. All conditions and timing looked bullish to invest except 9/11 happened.

A true story.